Universal LNG Holdings, Inc. announced it is acquiring HEYCO LNG’s 64-acre facility in Yoakum, Texas, to build the first Liquified Natural Gas (LNG) facility dedicated to the energy sector in the Southern Gulf Coast. The acquisition could provide a much-needed boost to a domestic energy industry struggling under high production costs, according to the company.
The plant, which is expected to be operational within 11 months, will produce 300,000 gal. per day of LNG, with the potential to expand to more than 800,000 gal. per day. Domestic LNG production coupled with several key initiatives have the potential to reduce the cost of oil and gas production in the U.S. by an estimated 20 percent per barrel – a savings that could relieve a greatly strained domestic energy industry.
Reservoir Silicates, who will partner with Universal LNG to provide propant/frac sands and treatment of post-frac water, will also greatly help reduce the costs of operations while increasing efficiency. The Canadian company is a leader in providing North American energy markets with high-quality Northern White frac sand.
“The U.S. energy sector is in dark days right now. All major producers are seeking ways to reduce costs per barrel – LNG has the potential to effectively rescue our nation’s troubled industry,” said Jeffrey Liu, CEO of Universal LNG Holdings. “We will reduce the cost of oil production to help keep the energy sector surviving through these dark days. Then, when the good times roll again, our LNG will introduce increased margins.”